By Ashwani Mishra, Editor-Technology, 63SATS
India is grappling with a mounting cyber fraud epidemic, with losses in the first nine months of 2024 totaling ₹11,333 crore, according to the Indian Cyber Crime Coordination Centre (I4C).
These figures, alarming on their own, are just the tip of the iceberg as projections suggest cyber fraud losses could surpass ₹1.2 lakh crore in 2025, amounting to nearly 0.7% of the country’s GDP.
The Scams That Hurt Most
According a report by The India Express, stock trading scams emerged as the most costly, siphoning ₹4,636 crore from victims through 2,28,094 complaints. Investment-related frauds followed closely, causing ₹3,216 crore in damages across 1,00,360 cases, while “digital arrest” scams accounted for ₹1,616 crore in losses from 63,481 complaints.
Behind these numbers lies a sophisticated network of cybercriminals leveraging technology to exploit unsuspecting victims. Data reveals that nearly 45% of the 12 lakh complaints filed in 2024 originated from Southeast Asian countries such as Cambodia, Myanmar, and Laos.
How Funds Disappear
Fraudulent funds are typically laundered through mule accounts, cheques, central bank digital currencies (CBDCs), fintech crypto platforms, and e-wallets.
In 2024 alone, the I4C froze 4.5 lakh mule accounts to disrupt these operations. However, the anonymity offered by VPNs, weak KYC protocols, and the growing use of cryptocurrencies present significant challenges in stemming the tide of financial crimes.
Cybercrime Trends and Challenges
With complaints surging to an average of 7,000 per day on the National Cybercrime Reporting Portal by mid-2024, the scale of cybercrime has grown by 113.7% compared to 2021-2023. International networks, particularly those linked to China, play a critical role in these scams.
Emerging threats like social engineering, deepfakes, ransomware, and supply chain attacks are adding complexity to investigations. The use of digital wallets and foreign money exchanges makes tracing stolen funds difficult, leaving investigators to play a constant game of catch-up.
Crackdowns and Collaborative Efforts
India has begun to take proactive steps. Collaborating with the Ministry of Telecommunications, the I4C has blocked 17,000 WhatsApp accounts linked to Southeast Asian cybercriminal networks. These measures, while impactful, are only part of the solution as cybercriminals continue to evolve their tactics.
Since its inception in 2021, the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) has documented 30.05 lakh complaints, with total losses reaching ₹27,914 crore. The trajectory of these numbers underlines the urgency of addressing this crisis.
India’s fight against cyber fraud will require stronger global partnerships, better regulatory frameworks, and heightened awareness among citizens. Without decisive action, the projected losses for 2025 could become a grim reality, weighing heavily on the nation’s economy and its citizens.
